Nordicity International Wireless Market Comparison Report
comprehensively analyzes competition in Canada's wireless industry
relative to other developed countries
OTTAWA, June 17, 2011 /CNW/ - To deliver wireless service to 99 per cent
of Canadians, Canada's wireless providers deployed a network that
serves 12 subscribers for every square kilometre of coverage, making it
the least densely subscribed network of any developed wireless market.
This density compares with 37 subscribers per square kilometre in the
United States and 312 subscribers per square kilometre in the United
Kingdom. Despite below normal economies of scale Canadians pay less
for wireless voice service than the international average.
Canada is now served by three national wireless providers and six
regional providers, resulting in one of the most competitive market
structures of any developed wireless market. In fact, Canada is one of
only six OECD countries where the two leading providers serve fewer
than 70 per cent of all subscribers and the top three providers serve
less than 95 per cent of all subscribers. The competitive market
structure has led to consumer wireless costs below international
Canada's average per-minute wireless costs are $0.02 below the
international average, and 11th- lowest of all OECD countries. As a percentage of average income,
Canadian's pay 10 per cent less for wireless voice service than the
international average and 12 per cent less for wireless (voice and
data) service overall.
Average wireless voice costs in Canada declined at a rate greater than
the international average between 2005 and 2010.
The revenue earned by Canada's wireless networks is the 4th lowest of 27 developed countries - revenue per square kilometre is 90
per cent lower than the average.
By comparing wireless markets in terms of per-subscriber revenue, the
Nordicity analysis is inclusive of all carriers and plans in each
market. Other wireless cost comparisons are less representative. For
instance, the OECD wireless price ranking incorrectly estimates average
wireless prices for all of Canada across six different usage profiles
on the basis of only four different wireless plans (two each from Bell
and Rogers). The OECD also compares post-paid, pre-paid and 'friends
and family' plans to develop rankings within a single calling profile.
Most significantly, other wireless price comparisons like the OECD
rankings do not recognize that nearly half of the wireless subscribers
in developed markets outside of North America pay for more than one
About Nordicity (www.nordicity.com):
Nordicity is an international consulting firm that specializes in
policy, strategy, and economic analysis in the cultural and
communications industry sectors. Our clients are public and private
organizations in the global creative and communications industries.
Nordicity's combination of extensive experience, functional expertise
and international presence enables us to understand our client needs,
apply innovative analysis and provide clear effective recommendations.
Nordicity was founded in Ottawa, Canada in 1979. We now have offices in
London, United Kingdom; Toronto, Canada; and Ottawa; and clients across
North America, the United Kingdom, Africa, and Asia.
SOURCE Nordicity Group Ltd
For further information:
Kurt Eby, Manager, Nordicity